Post on 29-May-2015
OPERATING AND
FINANCIAL RESULTS
3Q12
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Agenda
► Highlights
► Operating Results
► Introduction
► Financial Results
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► Highlights
► Operating Results
► Financial Results
► Introduction
Agenda
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Introduction
Presentation of Operating and Financial Information
► The financial information contained herein is presented in consolidated figures, pursuant to Brazilian Corporate Law, based on revised financial information. The consolidated financial information represents: i) 100% of CEMAR’s results, excluding 34.89% related to minority interests, ii) 25% of Geramar’s results and iii) 100% of Equatorial Soluções’ results, which in turn consolidated 100% of Sol Energias’ results, excluding 49% of minority interest before Net Income.
► The operating information presented herein consolidates 100% of CEMAR’s results and 25% of Geramar’s results.
► The following information was not reviewed by the independent auditors: i) non-financial information relating to CEMAR, Light and the PLPT (Programa Luz para Todos - Light for All Program); ii) pro forma information and its comparison with the results presented in the period; and iii) management expectations regarding the future performance of the Companies.
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► Highlights
► Operating Results
► Introduction
► Financial Results
Agenda
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Operating Highlights
► CEMAR’s billed energy volume totaled 1,213 GWh in 3Q12, 5.8% more than in 3Q11.
► CEMAR’s last-12-month energy losses totaled 20.8% of required energy in 3Q12, 0.4 p.p. less than the3Q11 ratio.
► CEMAR’s last-12-month DEC and FEC indices came to 21.4 hours and 11.3 times, respectively, in3Q12, 3.8% and 0.1% up on the 3Q11 figures.
► On September 25, Equatorial published a Material Fact stating it had signed a Sale and PurchaseAgreement for the acquisition of 61.37% of the capital stock of CELPA. The consummation of theoperation is subject to certain preceding conditions described in the contract.
► On October 11, Equatorial signed jointly with CPFL and the controlling shareholder of Grupo Rede aMemorandum of Understandings that permits the first two parties to evaluate, with exclusivity, all of thecompanies controlled by Grupo Rede which could result in the acquisition of a controlling stake of thelatter.
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► Net operating revenues (NOR) in 3Q12 reached R$650.3 million in, 30.4% higher than the NOR posted in3Q11, which reflects growth of 23.6% for CEMAR and the Sol Energias merger.
► In 3Q12, the EBITDA totaled R$141.5 million, a 7.5% increase compared to the adjusted amount for 3Q11.
► The net income for the quarter was R$57.5 million, up 13.4% compared to the adjusted amount for the samequarter of the previous year.
► Equatorial’s consolidated investments amounted to R$166.7 million in 3Q12, 45.4% up year-on-year. InCEMAR (excluding direct investments in the Light For All Program), total capex amounted to R$116.2 million,55.9% growth. Light For All Program investments totaled R$50.5 million, a 26.2% growth.
► The SUDENE benefit, which reduces CEMAR’s Income Tax in 75%, had its validity extended until 2021.
Financial Highlights
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► Highlights
► Operating Results
Agenda
► Introduction
► Financial Results
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► CEMAR: 3Q12 energy sales moved up by 5.8%, reaching 1,213 GWh.
CEMAR – Electricity Sales Volume
Electricity Consumption per Segment (GWh)
Energy Balance (GWh)
CONSUMPTION SEGMENTS * (MWh) 3Q11 2Q12 3Q12 Chg. 9M11 9M12 Chg.
Residential 526,397 562,098 563,400 7.0% 1,491,298 1,654,571 10.9%
Industrial 122,827 114,104 128,518 4.6% 331,940 355,237 7.0%
Commercial 227,005 241,607 240,682 6.0% 638,560 706,436 10.6%
Other 270,199 281,422 279,996 3.6% 749,833 813,572 8.5%
TOTAL 1,146,428 1,199,232 1,212,595 5.8% 3,211,631 3,529,816 9.9%
(*) Does not consider own consumption and sales to CEPISA.
ENERGY BALANCE (MWh) 3Q11 2Q12 3Q12 Chg. 9M11 9M12 Chg.
Required Energy 1,456,156 1,473,569 1,571,246 7.9% 4,048,335 4,439,536 9.7%
Sold Energy (*) 1,148,466 1,201,431 1,214,772 5.8% 3,217,216 3,536,186 9.9%
Losses 307,689 272,138 356,474 15.9% 831,119 903,350 8.7%
(*) Considers sale to the segments, own consumption and sales to CEPISA
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Distribution – Energy Losses in CEMAR
We reviewed the calculation method of the percentage of non-technical losses on the Low Voltage market,which also changed the historic values disclosed by the Company.
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DEC (hours) FEC (times)
Distribution – DEC and FEC (Last 12 months)
► CEMAR: In 3Q12, the DEC and FEC rates increased respectively 3.8% and 0.1% over the same quarter last year.
21.420.6
3Q11 3Q12
3.8% 11.3 11.3
3Q11 3Q12
0.1%
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► Highlights
► Operating Results
Agenda
► Introduction
► Financial Results
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Quaterly Results
Adjusted EBITDA
RGR: 3Q11 consolidated EBITDA was negatively affected by R$ 5.5 million, arising from the adjustment atan accounting entry in CEMAR (no cash affected) in RGR expenses referring to 1H11, part of Deductionsfrom Operating Revenues. Thus, 3Q12 EBITDA grew by 7.5% over the 3Q11 adjusted EBITDA.
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Quaterly Results
Adjusted Net Income
RGR: The adjustment of CEMAR’s RGR accounting entry, net of tax and minority interest, negatively impactednet income by R$ 3.1 million. Considering this effect, 3Q12 NI was 13.4% higher than 3Q11 Adjusted NI.
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Debt: Schedule of Gross Debt Maturities
Consolidated Gross Debt(100% CEMAR + 25% Geramar)
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100% CEMAR + 25% Geramar
Net Debt - Consolidated
Net Debt (R$MM) and Net Debt/ EBITDA (Last 12 months)
Net Debt Reconciliation (R$MM)
1,051.3974.6
1,108.31,082.61,002.4
2.02.0 2.11.9
2.1
3Q11 4Q11 1Q12 2Q12 3Q12
496.9
1,051.31,599.3
51.1
Gross Debt Net
Regulatory
Asset
Cash Net Debt
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65.11% CEMAR + 25% Geramar
Net Debt – Pro-rata
Net Debt (R$MM) and Net Debt/ EBITDA (Last 12 months)
Net Debt Reconciliation (R$MM)
714.4661.5751.0735.0
681.7
2.0 2.1 2.02.1 2.0
3Q11 4Q11 1Q12 2Q12 3Q12
330.1
714.41,077.8
33.3
Gross Debt Net
Regulatory
Asset
Cash Net Debt
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► CEMAR: In 3Q12, total capex reached R$166.7 million, of which R$116.2 million are own capex and R$50.5 million regarding theLight for All Program (PLPT).
Capex - Equatorial
INVESTMENTS (R$MM) 3Q11 2Q12 3Q12 Chg. 9M11 9M12 Chg.
CEMAR
Own (*) 74.5 101.0 116.2 55.9% 181.0 291.0 60.8%
Light For All Program 40.0 37.1 50.5 26.2% 124.5 132.1 6.1%
Total 114.5 138.1 166.7 45.5% 305.5 423.2 38.5%
Geramar
Generation 0.1 0.0 0.1 -37.4% 0.1 0.3 270.3%
TOTAL 114.6 138.1 166.8 45.5% 305.6 423.4 38.6%
(*) Including indirect Light For A ll Program investments
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Eduardo HaiamaCFO and IRO
Thomas NewlandsInvestor Relations
Telephone 1: +0 55 (21) 3206-6635Telephone 2: +0 55 (21) 3217-6607
Email: ir@equatorialenergia.com.br
Website: http://www.equatorialenergia.com.br/ir
Contacts
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• This presentation may contain forward-looking statements, which are subject to risks and uncertainties, as they were based on theexpectations of Company’s management and on available information. These prospects include statements concerning the Company’scurrent intentions or expectations for our clients; this presentation will also be available at our website www.equatorialenergia.com.br/ir andin the IPE system of the Brazilian Securities and Exchange Commission (CVM).
• Forward-looking statements refer to future events which may or may not occur. Our future financial situation, operating results, market shareand competitive positioning may differ substantially from those expressed or suggested by said forward-looking statements. Many factorsand values that can establish these results are outside Company’s control or expectation. The reader/investor is advised not to completelyrely on the information above.
• The words “believe", “can", “predict", “estimate", “continue", “anticipate", “intend", “forecast" and similar words, are intended to identifyestimates, which refer only to the date on which they were expressed. Hence, the Company has no obligation to update said statements.
• This presentation does not constitute any offering, invitation or request of subscription offer or purchase of any marketable securities. And,this statement or any other information herein, does not constitute the basis for any contract or commitment of any kind.
Disclaimer